Decision PROPOSED DECISION OF ALJ STALDER (Mailed 9/7/2000)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of San Jose Water Company (U-168-W), a corporation, for an order authorizing it to increase rates charged for water service.

Application 95-08-038 (Filed August 14, 1995)

Robert A. Loehr, Attorney at Law, for San Jose

Water Company, applicant.

Francis S. Ferraro, for California Water Service

Company, interested party.

Peter Fairchild, Attorney at Law, for the Water Division.

OPINION

Summary

This Phase 2 decision adopts the Stipulation executed between San Jose Water Company (SJWC), California Water Service Company (CWS), and the Large Water Branch (LWB) of the Water Division in November 1996. SJWC is ordered to reduce its rate base by $1,945,472 of Construction Work in progress (CWIP), and is ordered to include Interest During Construction (IDC) of $160,962 in rate base. SJWC is also authorized to record in rate base $69,010 of the cumulative amount of pre-1996 IDC now held in the memorandum account ordered by Interim Decision (D.) 96-07-036. The memorandum account is closed and the proceeding closed.